DRIVERS OF RENEWABLE ENERGY CONSUMPTION: EVIDENCE FROM A GLOBAL PERSPECTIVE
DOI:
https://doi.org/10.18623/rvd.v22.n6.3995Keywords:
Technological Innovation, Digital Financial Inclusion, Economic Growth, CO₂ EmissionAbstract
The global shift toward renewable energy has intensified the need to understand the key factors influencing renewable energy consumption (REC) across countries. This study investigates the determinants of REC by jointly examining the roles of technological innovation, digital financial inclusion, economic growth, carbon dioxide emissions, population size, foreign direct investment, urbanization, and trade openness. Using a balanced panel of 69 countries over the period 2002–2023, the study applies a Bayesian regression framework to address common empirical challenges such as multicollinearity, parameter uncertainty, and cross-country heterogeneity. The empirical findings reveal that technological innovation is a fundamental driver of renewable energy consumption, highlighting its importance in improving efficiency and enhancing the competitiveness of clean energy technologies. Economic growth and foreign direct investment also exert positive effects, suggesting that higher income levels and capital inflows can facilitate renewable energy expansion when aligned with appropriate structural and policy conditions. In contrast, carbon dioxide emissions, population growth, urbanization, and trade openness negatively affect renewable energy consumption, indicating that fossil fuel dependence, demographic pressure, and trade-driven scale effects may constrain the energy transition. Digital financial inclusion shows a positive but conditional impact, implying that its effectiveness depends on complementary green finance policies and regulatory support. The results demonstrate that renewable energy consumption is shaped by a complex interaction of economic, technological, financial, demographic, and structural factors. The study provides robust policy-relevant insights to support the design of integrated strategies for advancing a sustainable low-carbon energy transition.
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